It wouldn't get that much more convenient. For example instead of putting the DVD into my T.v. I would have to take a game out of my Wii and then put the DVD in which would actually be less convenient. If you just weigh the pros and cons of it it isn't really worth it mass producing a Wii with a DVD player in.

The thing is not making the Wii a DVD player is kind of counter intuitive to Japanesse design. With space being a premium over there people are always looking for smaller electronics and integrating things only makes stuff that much smaller. Making the PS3 almost perfect as it integrates many products into one convient if slightly large case.

If the Wii could replace a DVD player it would be a huge improvement as you could completely eliminate one fairly bulky player for the small sleek Wii. In truth I think they missed the boat on that one. It really wouldn't have added significantly to production costs. A red laser is a red laser. You just need firmware capable of decoding the software really.

And really how long does it take to eject a disc and put in another? That is hardly a major inconvience. Especially if you have a disc in the DVD player anyway the result is the same. It isn't like you will be playing a game while you watch the movie.

Because the current Wii model was not designed to play DVDs, does not use DVDs and would require them to pay the DVD Forum licensing fees. The Wii would need extra physical components to play a DVD, and even then it wears out the lens eventually which is not designed for the constant reading that a DVD requires. They need new hardware if they want the Wii to play DVDs.